Council Post: You Don’t Need Money, You Need A Network

President of Alliance Reservations Network, Founder & CEO of The Strack Group, serial entrepreneur passionate about empowering others.

You are who you surround yourself with, period. Often, I talk to entrepreneurs who are completely focused on raising capital — it’s the only thing they think about. But to me, other resources are much more valuable than money.

What’s the No. 1 resource I advise entrepreneurs to acquire? A strong professional network.

As a venture capitalist and entrepreneur, my network has been invaluable to me. My relationships, both professional and personal, have given me knowledge, resources and introductions that saved me an incredible amount of time and money.

The Ideal Network

Your network should deliver three items: 

• Council: Business leaders who will give you free advice because you have a relationship with them.

• Introductions: Referrals to companies, services and other people who are otherwise hard to access.

• Fast Learning Curve: People in-the-know who can give you relevant, up-to-date information you can’t easily get elsewhere.

If you’ve ever started a business, you know how much time it takes to learn lessons the hard way on your own. You also know how one good referral can change your life. Through quality relationships, you skip a lot of the hardships.

Building Relationships

How do you build a strong network of well-positioned people who will in turn introduce you to the best of their network? One contact at a time.

When I started out, I met people in food lines, banks, via neighbors, car service waiting areas — I could go on and on. Every person was an opportunity, and I concentrated on shaping my network to perfection. As I’m writing this, I’m recalling each conversation and how each person has helped me mold and shape my business career.  

You may need to rely on your social networks at first by making friends and not talking business. When you have a startup, you don’t necessarily have the clout to get in front of someone who is going to help your career. Don’t be discouraged; making friends on a golf course or at events is the best kind of networking.

Finding The Right People

As you get used to introducing yourself to people, learn to be a bit strategic in who you engage. One way to do this is by targeting homogeneous groups in your business realm. Research meetups and networking groups centered around interests that align with you. Then, know what kind of people you’re looking to meet before you go to an event. 

In a previous article, I talk about identifying “influencers” in your industry who have access to large pools of your potential customers. A strong relationship with one of these people can provide exponential benefits.

Understand, not everyone you meet is the right person. You essentially need to learn how to qualify them before you let them into your network. I’d size people up all the time; I’d pay attention to their car, who they surrounded themselves with, how they carried themselves, etc. so that I could learn to recognize the best people to connect with.

I’m not saying you should snub people. Burning bridges limits where you can go, and it harms your reputation. The point is to allocate your time and your resources on the people with whom you can share the most beneficial relationships — and that goes both ways.

With experience, you improve your judgment. However, while you’re building that experience, surround yourself with people with integrity. You can never go wrong in that kind of company.

Giving To Get

Once you identify people you want to build a relationship with, you have to sell yourself to them. I’m not just talking about your product. You also need to show them the value you bring to them as a connection.

What lessons have you learned in your career? Who can you offer to introduce them to? You may not be able to offer much, but if your business has a competitive advantage at all, leverage that.

Capitalizing On Opportunities

As you build relationships, you need to be ready to insert your company or product into the conversation in a way that doesn’t alienate your friends or sound forced.

Have your pitch ready, and leave out the cheap sales talk. Give a sharp, 10-second introduction on yourself and your company. The key to success is to communicate the maximum amount of information in the fewest words possible.

You also want to tailor your pitch around the person you’re talking to. Make sure it hits exactly what matters to them, without any distracting extra information. This goes back to “giving to get.” What you say has to provide value to the person you’re talking to in order for them to care.

Strong Networks

A network is one of five things I advise entrepreneurs to focus on more than raising capital. When your network is full of people who will walk you to the front of the line, you’ve reached the pinnacle of your career. You know you’ve done right by people if they’re willing to bend over backward for you. A friend who can help you is invaluable to success.


Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?


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